Stocks edged up in early morning trading today (Thursday) as an uptick in producer prices and steady earnings from Wal-Mart Stores Inc. (NYSE: WMT) outweighed a surge in jobless claims last week.

This is the first major report coming out this week, and could have a real impact on the markets. Expectations are for a decline in sales since last month, albeit at a slower rate than previous months.

Retail sales and inflation took a step backward in March, as dour consumer demand hurt the former and suppressed energy prices stalled the latter.

This promises to be a very busy week with a full calendar of economic reports and earnings announcements, so let’s dive right in and highlight some of the more important ones.

Renowned investor George Soros said Friday the world financial system has effectively disintegrated, and there’s no near-term bottom to this financial crisis in sight.

Federal Reserve Chairman Ben S. Bernanke said that he expects inflation to be “quite low for some time,” but that the Federal Open Market Committee will begin publishing its long-term inflation forecasts to promote transparency.

Retail Jobs are cut in December! …  Dollar rallies on renewed Trading Theme…  Looking for the Obama bounce…  High yielders get sold… And Now… Today’s Pfennig!

The U.S. Producer Price Index (PPI) and Consumer Price Index (CPI) both fell in October. Those declines – combined with sharp downward spirals in worldwide stock and commodity prices – have caused many analysts, and even central bankers, to worry that we are on the brink of deflation.

If there’s a proverb that captures the outlook for the U.S. economy in the New Year, it’s the one that says: “It’s always darkest before the dawn.”

What will Paulson say?   Dollar remains well bid…   How long for Safe Haven buyers?   G-20 Schmee 20! And Now… Today’s Pfennig!